Cincinnati startup in line for Mark Kvamme investment

Mark Kvamme co-founded Drive Capital. Columbus Dispatch

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Former JobsOhio chief Mark Kvamme, who co-founded Columbus-based Drive Capital this year, is investing in Roadtrippers, the startup that allows travelers to map routes, book hotels, browse special events and find deals in other cities.

The investment has not closed, and details are still being finalized.

But Kvamme’s interest validates the ability of local startups to attract outside capital from well-regarded investors into the region. Kvamme spent much of his career in Silicon Valley and was formerly a partner at Sequoia Capital, the West Coast venture capital firm that made early investments in Apple and Google.

Kvamme, who spoke as part of an investor panel Wednesday at the Southland Conference in Nashville, Tenn., said that he recently funded a company that grew out of the Brandery, the Over-the-Rhine consumer marketing and branding accelerator.

Three sources confirmed that the startup is Roadtrippers, a 2011 Brandery graduate, which already has raised $629,000. The size of Kvamme’s expected investment was not disclosed, and Roadtrippers officials declined to comment. Its existing investors include Downtown-based CincyTech and Vine Street Ventures.

Dow Jones VentureWire reported in May that Kvamme is raising a $300 million fund that could become another source of venture capital for Cincinnati startups. The fund is expected to focus on finding deals in the Midwest, according to Dow Jones.

Kvamme’s investment into Roadtrippers is not just significant for that startup, but important for the region, which has made attracting more early stage venture capital a priority. Cintrifuse, the business community-led effort to support high-growth startups, includes a fund of funds, which has raised $51 million to date.

That fund, which could ultimately raise up to $100 million, will make investments in early stage venture capital funds around the country. The goal is those funds will then invest their own capital and expertise into high-quality local startups.

Kvamme’s investment in Roadtrippers shows individual local startups are attracting outside capital on their own.

Kvamme isn’t the only significant investor considering this region.

Dan Gilbert, founder and chairman of casino developer Rock Ventures LLC, is also a general partner in Detroit Venture Partners, a venture capital firm that backs seed and early stage companies. Gilbert has met with Cincinnati startups and is said to be considering making local investments.

During this week’s panel discussion, Kvamme specifically mentioned The Brandery and called it “one of the best accelerators outside of Silicon Valley,” according to the web site Nibletz, which covers startups.

Kvamme came to Ohio in 2011, when Gov. John Kasich recruited him to run Ohio’s Department of Development and start the nonprofit JobsOhio. ⬛

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